HP acquired Autonomy by offering 64% premium over its market value of 7.1 Billion which is almost equal to 1.7 times the change in market capitalization value of HP at the announcement. The announcement was not taken very positively by HP shareholders and the decline in stock price resulted in a 4.2 Billion decrease in market value of HP.On the other hand, stock price of Autonomy went up by 72%.The whole deal meant that HP had to suffer a loss of almost 8.2 Billion on acquiring Autonomy. When a
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HP and Autonomy: A Strategic Misfire Rob Hemsath Strayer University Contemporary Business BS508 Dr. Antoinette Bridges May 19, 2014 Abstract Hewlett Packard’s 2011 Acquisition of Autonomy Corporation proved to be disastrous for the company’s financial status and reputation. While many have cited it as a poor decision, it was poor execution and HP’s internal conflicts that created a situation that resulted in HP writing of $8.8 Billion dollars of Autonomy’s value. HP’s relationships with
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an USD 8 billion mistake: HP & Autonomy merger Zachary E. Fender BMGT 335-800 July 14, 2013 Introduction. Hewlett Packard (“HP”) under the executive management of former Chairman Ray Lane and former CEO Leo Apotheker, wanted to acquire a leading software company providing technology solutions in the unstructured data search & retrieval specialty. British software company, Autonomy, was identified as a good candidate and in August 2011 HP published their intent to acquire
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Patterson, of CtW Investment Group, addressed to Hewlett-Packard’s (HP) Lead Director and Corporate Governance Committee Chairman Rajiv Gupta, I have discovered many new items I was not previously aware of. This well thought and precisely constructed letter clearly addresses the issues and concerns felt by a majority of HP’s shareholders following the news regarding the recent $8 billion of impairment charges. If I were a stockholder of HP, I would be equally as concerned and would question the judgment
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Technology (IT) giant, Hewlett-Packard (HP) is one of the most acclaimed manufacturers, incorporated in 1939, known for producing software, PCs, desktops, office supplies and technological gadgets including mobile phones and cameras. In addition to that, HP’s Enterprise Business provides business consultation, support services, servers and storage that is also responsible for setting up network links and wireless access points. Throughout its establishment, HP has grown into a hardware empire that
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executives pressure. Perceived Opportunities- perpetrators see some sort of opportunity, such as promotion, otherwise they would not do it. INTERESTING FACTS ABOUT AUTONOMY CORPORATION, PARMALAT AND HOMESTORE.COM ACCOUNTING SCANDALS Autonomy Corporation • HP accused the former Autonomy management, which was bought by HP for £6.7bn in
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In the fall of 2011, Hewlett-Packard (HP) acquired Autonomy, an information technology software company, for $11.1 billion. Less than a year later, several top managers and Autonomy founder Mike Lynch were let go due to corporate culture differences and poor financial results. Shortly afterwards a whistleblower revealed to HP accounting improprieties that over time have forced HP to write-off over $5 billion. HP claims that Autonomy mischaracterized its audited financial statements intentionally
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HP – STRONG BUY Equity Research • IT • 19 August 2011 • Jyske Markets Accounts This is a case recommendation. The company will be included in our equityresearch universe as long as it holds price potential justifying a BUY recommendation. When this is no longer the case, we will discontinue our coverage although our recommendation is ACCUMULATE, REDUCE or SELL. HP price fall is overdone We restate our STRONG BUY recommendation for HP and see yesterday’s dramatic price fall as an attractive
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Corporation and many others. Main Competitors SWOT HP SWOT analysis 2013 Strengths 1. Strong presence in China 2. Brand reputation 3. Diversified product portfolio Weaknesses 1. Poor competency in acquisitions 2. 29% of income comes from personal systems division 3. Poor presence in tablet market Opportunities 1. Expand services and enterprise solutions divisions 2. Increasing demand of cloud based services 3. Acquisition of more technology related patents Threats 1. Retaliation
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1) ‘HP Way ‘is a set of primary values that define how workforce and the company are to perform. These values have become the foundation of the “HP Way”. It is an objective-oriented philosophy, where each constituency can share the same principles and work toward a common goal. The primary values of the HP Way are trust and respect for individuals; high level of achievement and contribution; conducting business with uncompromising integrity; common objectives through teamwork; innovation and flexibility
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